News

Global IIRC consultation opens today

The IIRC is issuing a worldwide invitation to stakeholders to respond to its Consultation Draft of the International Integrated Reporting Framework.

Fifteen events are being held around the world today to launch the Framework, six of which are being hosted by stock exchanges.

The Framework aims to guide businesses in using a new reporting model that integrates intangible factors, such as intellectual property, brand, talent and environmental resource use, into strategic decision-making and reporting.

“Over the last three years, the IIRC has built consensus around the idea that the current corporate reporting model must change to meet the needs of today’s business and investment environment.  The Framework is the product of business and investor input and testing involving over 300 individuals and organisations.” - Paul Druckman, Chief Executive, IIRC.

Reporting is evolving - but is the pace of change too fast?

Wednesday, April 10th, 2013

There is certainly debate about the impacts of the new frameworks from the Global Reporting Initiative (GRI) and International Integrated Reporting Council. How will they work together? Will they make it easier or more burdensome to report?

Our final panel will focus on how integrated reporting creates value and the challenges companies face in following this path.

We are delighted to announce that Marjolein Baghuis, Director of Communications & Network Relations, GRI will join this panel to provide insights from the GRI Global Conference and the roadmap for the new G4 framework.

BIS perspective on the future of non-financial reporting in the UK

Thursday, March 28th, 2013

Richard Carter, Director of Business Environment at the Department of Business, Innovation and Skills, will join the first panel of the day to help us set the scene regarding the current reporting landscape in the UK, offer an update on BIS narrative reporting and a view on the future for non-financial data.

BIS hosted a half-day forum in February to discuss the draft UK regulations for the Strategic Report and Directors’ Report, together with ideas for guidance on narrative reporting, which the Financial Reporting Council (FRC) will produce. These regulations are due to come into force in October 2013 when companies with reporting year-ends after that date will be expected to prepare their annual report in line with them.

An ACCA summary of the event  suggested most present were in favour of narrative reporting which was not driven by regulation or compliance and was therefore less formulaic. It was felt that companies should be free to report clearly and in their own way. We hope to continue this discussion during “Drivers for non-financial reporting” panel.

IIRC and GRI cement their cooperation with a new MoU

The recently signed agreement sends a message to those worried about the way the new G4 guidelines and Intergrated Reporting Framework are going to work together.

Both organisations say they share a common view of the evolution of corporate reporting – one in which integrated reporting and sustainability reporting play a vital and complementary role.

Paul Druckman, Chief Executive, IIRC:

“This MOU cements the relationship and prepares us for the next phases of our work: the delivery of the Integrated Reporting Framework and then its implementation.”

Lodestar is also working with the IIRC to provide a consultation workshop on the draft integrated reporting framework to follow the Non-financial reporting conference. The workshop is an opportunity for delegates to develop their knowledge of the framework and to influence some of the key topics.

CDP adds its support

Wednesday, February 27th, 2013

CDP, formerly Carbon Disclosure Project, has added its name to the list of supporters behind the Non-financial reporting conference this year. Its Chief Executive, Paul Simpson, will again participate in the investor panel discussion. In 2013 the panel will explore how to turn sustainability metrics into meaningful decision-making tools and will help us to unpick the language of sustainability.

This year a record number of investors became signatories to CDP’s climate change program, up 10% from last year to 722 signatories with US$87 trillion in assets.

Paul Simpson, CEO of CDP says: “We have seen a twentyfold growth in the number of investors requesting climate data through CDP since we pioneered the global system for natural capital disclosure a little over ten years ago.  Further, CDP data points on corporate climate change disclosure and performance are downloaded by investors through Bloomberg terminals an average of 1 million times every six weeks.  These points are indicative of the increasing relevance of environmental data to investment decisions and why we are keen to ensure that narrative reporting is as effective and useful for investors and companies as possible.”

We’re delighted that CDP has become a supporter of the event. For information on becoming a supporter or sponsor please contact Samantha Pearce on 0207 344 1816.

Next steps - IIRC consultation on integrated reporting

Wednesday, February 13th, 2013

Is integrated reporting the next major stepping stone for corporate reporting? As the momentum behind the new practice grows, so too do expectations of what it will deliver.

The process of bringing financial and non-financial data into one report will require accountants and sustainability professionals to work together in new ways to create meaningful sustainability metrics which are linked to strategy and to the bottom line.

The non-financial reporting conference is a forum for finance and sustainability professionals to discuss the future of reporting in the UK. The event will explore major developments including the launch of Global Reporting Initiative’s G4 guidelines, the introduction of mandatory carbon reporting and initiatives from the European Parliament.

The International Integrated Reporting Council (IIRC) launches its consultation on the draft integrated reporting framework on April 16 and expects to publish the final “version 1.0” in December. As part of this consultation the IIRC is supporting the Non-financial reporting conference which will feature a debate on the merits of integrated reporting and where it fits in a broader context followed by a consultation workshop.

To receive updates on the programme and speakers please register here. To book your place contact Shelley Wills.

Role of the CFO in a state of change

Tuesday, January 22nd, 2013

The challenge for businesses is in providing non-financial information that is useful for investors. The new role of finance professionals in improving the quality of reporting non-financial data is a vital part of the process. A Deloitte survey in 2012 showed that half of CFOs understand the link between sustainability performance and financial performance. Will this number increase in the course of 2013?

In recognition of the vital role the CFO will play in the success of their companies in the year ahead, ACCA is running a campaign to support CFOs this month using a range of research and resources it has recently produced.

Helen Brand, Chief Executive of ACCA said: ”Our expert interviewees say that the role of the CFO has become more complex than in the past. The CFO is being called upon to drive and improve business performance in a demanding business environment. We think it only right that as we start the New Year, we focus on what drives them, what their role is and the challenges they face.”

Going mainstream

Thursday, January 10th, 2013

The global tide is turning in favour of integrated reporting, says journalist Robert Bruce, and accountants equipped with new skills will help steer it properly.

Robert chaired the final panel of the first Non-financial reporting conference in 2012 and says, “The enthusiam behind the concept of non-financial reporting is tangible. Where the uncertainty remains is among the many different views of how it could be brought about.”

ACCA’s latest Accountancy Futures journal features a two-page spread by Robert Bruce exploring many of the themes which emerged at the first event and raises questions which will be tackled at the 2013 conference in June. The full article can be found on page 66 of the publication here.

A wake up call needed for resource-intensive businesses

Wednesday, December 12th, 2012

A new Chatham House report about resource scarcity has made recommendations it says will help the world avoid, “sleepwalking into a prolonged era of resource-related strife”.

 
It claims price volatility is the new normal and that collaborative governance, driving down resource intensity and encouraging sustainable use are the only ways to manage the changing rules of the game.

 
However, when we look at a new Carbon Trust survey of 475 senior executives in Brazil, China, Korea, the UK and USA the results show the culture within many businesses needs a huge shift to meet this challenge. About half of those surveyed have not set targets for carbon, water or waste reduction and the same number again feel that acting on sustainability issues actually decreases their profits.

 
Tom Delay, Chief Executive of the Carbon Trust, commented on the study’s findings: “The research shows that many organisations are ‘asleep at the wheel’ when it comes to addressing sustainability and resource scarcity, doing nothing to address a problem they indicate could hit their operations by 2018.”

 
Achieving a demonstrable, positive impact for the bottom-line through sustainability initiatives was one of the challenges discussed at Non-financial reporting conference 2012. This is a huge driver for sustainable business and Lodestar will bring leaders in this area together to share ideas and demystify the issue for the next conference in 2013. Register here for updates on the conference programme and attendees.